Partial Transcript:
Futremoneytrends.com: Greetings, and thank you
for joining us at futuremoneytrends.com. I'm here with Brien Lundin. He
has a career spanning three decades in the investment markets and
newsletter business helping investors find the right investments. He's
the CEO and president of Jefferson Financial under the Jefferson
Financial umbrella, Brien publishes and edits Gold Newsletter, a
cornerstone of precious metal advisories since 1971, wow. And everyone
knows that's a key date for gold, 1971. Brien, thank you so much for
joining us.
Brien Lundin: Great to talk with you.
Futremoneytrends.com:
Brien, a lot of people who are investing in inflation, or investing
because they're concerned about inflation in the economy, or supply and
demand of resources, have gone into the junior resource sector and over
the past few years it's been kind of a bloodbath for investors, and I
want to find out from you, with you looking at all the sectors for
different resources and opportunities: is there anything out there that
stands out that has an extreme value situation? Where obviously we've
got gold down, silver down, uranium down, natural gas, but is there
anything out there that might be a major opportunity for people right
now?
Brien Lundin: Well, when you look at it you have to consider
what's happened to the broader market, and we had a tremendous bull run
this century, really since 2000 in precious metals, and the junior
mining stocks really leveraged those gains. And what was happening then,
there were a number of factors. There was obviously the rise of the
developing countries, rise of China and the strain that that was putting
on the broader commodity sector and metals, but you also had a large
scale monetary reflation. Across the world fiat currencies were being
reduced at greater and greater rates, and debts were being piled up,
particularly in the west, at greater and greater rates. And we reached
kind of an inflection point and — actually kind of a stumbling block in
2008 with the credit crisis. That only exacerbated the long term trends.
It made and makes the long going creation of fiat currencies even more
necessary and more traumatic. Since 2008 what we've seen is that the
juniors didn't provide any leverage to underlying rise in metal prices
and even the majors didn't and the reason for that is people wanted to
buy gold and silver as safe havens as protection against the monetary
inflation, and the general economic environment, the general investing
environment was very risk averse. Nobody wanted paper, they wanted the
real thing, which was gold and silver. So the equities were actually
greater due to lack of demands and lack of any buying pressure. In the
current environment I think we're at another crucial turning point.
We've had about a two year correction in precious metals, and we've seen
the gold and silver come up from late June bottoms, this supply
situation is extremely tight, almost unprecedented levels, and the
junior equities have started to respond to that. I do think the future
for precious metals related junior resource stocks is very positive
going forward. With that said though. there is going to be a lot of
volatility, so if investors can look for markets where there are long
term trends and/or special situations that create near term
opportunities, those are particularly attractive these days. One of the
areas that I've seen is uranium.
Futremoneytrends.com: You know
I've seen a lot of people talk about uranium over the years you know
Rick Role and people at Mara Catusa and David Morgan, and yourself. And
it's kinda like uranium has just been beaten down everyone kind of
thought that the worst was over — at least in my opinion I kinda thought
it was. And now it's below 50, now we're below 40. Is 2014 going to be
the year for uranium to recover, since the Fukashima accident, and then
is this even sustainable? Are companies going to start shutting down
mines at these prices?
Brien Lundin: Well, I think 2014 will be
the year for a number of reasons. The price of uranium — we had that
first stage of uranium mania in the junior resource market, I guess it
was about five years ago now, really closer to six years, in 2007. It
reached 140 dollars a pound and any company that had any relation to
uranium was trading for — juniors were trading for dollars a share,
regardless of what they had. Whatever moose pasture or prospects they
had. So there was a tremendous shake out in that area, and then we
started — well the 2008 credit crisis devastated the sector and uranium
prices as well, and nobody wanted these equities. Subsequent to that we
started to have a rebound in uranium prices, then the Fukashima disaster
put an end to that. Right now we're just coming out of that Fukashima
spawned correction in the uranium market.
FigaNews Tracking Gold Silver Precious Metals Markets , The Financial and Stocks Markets and The Economy
GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!